CBL Reports Progress In 1st Quarter -As Monetary Policy Rate Raised To 17.25%
The Central Bank of Liberia (CBL), has launched its first quarterly report for 2025, noting that it has raised the Monetary Policy Rate (MPR) by 25 basis points to 17.25% for the second quarter of 2025.
The CBL has however described the face of the Liberian economy as good, despite challenges that are affecting global and domestic economies.
“These challenges are not unique to Liberia, but we are working acidulously to keep our economy positive,” the CBL Executive Governor said.
The Monetary Policy Committee (MPC) is the CBL’s commitment to transparency and prudent economic management. The MPC was constituted by the CBL with responsibility to support the bank in monitoring policy decisions making to guide the management of liquidity in the economy for stability. According to the CBL, the MPC carefully reviewed global and domestic economic condition to inform the most appropriate policy decision for possibility and stability in the banking sector to support economic growth.
According to the Executive Governor of the CBL, Henry Saamoi, the MPC also maintains the reserve requirement ratios at 25% for Liberian dollar deposits and 10% for U.S. dollar deposits, noting that the standing credit and deposit facilities corridor was retained at +2.5 and –7.5 percentage points, respectively around the MPR.
The CBL boss observed that the decision reflects the MPC’s commitment to ensuring macroeconomic stability saying that inflation rose to 12.8% in the first quarter of 2025, up from 8.7% in the previous quarter.
Saamoi said, “Despite a slight decline in liquidity, the banking sector remained resilient, with the capital adequacy ratio rising to 31.5%, above the 10% regulatory threshold. Growth was recorded in gross assets, total deposits, and private sector credit. However, the high non-performing loans (NPLs) of 16.7 percentage points above the tolerable limit have triggered the implementation of the NPL Resolution Framework.”
The CBL said the Broad money (M2) grew by 13.4%, driven by increases in both net domestic and foreign assets.
“The Liberian dollar depreciated by 7.1% against the U.S. dollar, primarily due to seasonal demand pressures. Gross international reserves increased by 10.4%, supported by CBL’s foreign exchange operations and months of import cover stood at 3.6 months at the end of the first quarter,” Saamoi asserted.
He said, “On the global front, the IMF projects 3.3% global economic growth in 2025, with inflation expected to moderate across advanced and emerging markets.”
However, risks persist due to trade tensions, geopolitical uncertainties, and global financial vulnerabilities.
The MPC reassures the public of its commitment to maintaining price stability and supporting economic growth.
